The General Motors have planned to cut down their production of Chevrolet Equinox SUV at two of their North American plants following the announcement of cuts by Honda, Ford as well as other manufacturers.
The automakers have been facing the second downfall in the market since the Great Recession. Planners and analysts have said that how far the demand would go will be dependent on the way in which the Trump administration manages disputes with their trade partners especially China. Mary Barra, CEO of General Motors said that they had learnt very important lessons during the previous recession time and are therefore planning to adjust their production early to go with the market demand. The main target of the latest cutback of GM was the Equinox but other SUV’s namely Chevrolet Trax and GMC Terrain have also been impacted.
GM spokesman Dan Flores has said that they have planned to drop one of their three crews working in Mexico. The plant produces Chevrolet Trax, GMC Terrain and Equinox. In addition they are also planning to put their factory which solely produces Equinox to idle for a week in September which is situated in Ingersoll, Ontario. Flores said that they were focusing on making profitable sales and were committed in making business in a responsible way. Ford is also planning to stop its operation in their plant in Oakville, Ontario in the coming month. Four SUV’s are being produced in this factory namely Ford Edge, Ford Flex, Lincoln Nautilus and Lincoln MKT. Ford said that nearly 200 workers would be made inactive and has also cautioned about more cuts in the future.
Honda has confirmed its reduction in production of Civic and Accord models at its Ohio plant. Nissan has reduced their output in Canton, Mississippi and their operations in Mexico recently. Industry executives have said that the prevailing trade disputes will impact the US economy and the auto market in particular. There are other factors which could be troublesome. The prices of new cars have hit record levels and this would drive away some of the potential buyers from the market. According to the data from Edmunds tracking service, the interest rates on automotive have also increased to nearly 6%.